6.1 Introduction to Lending

To help borrowers understand the contractual obligations of a particular loan, the federal government requires lending institutions to disclose to each borrower in writing several pertinent facts regarding the loan before the borrower is asked to sign a promissory note. This requirement is governed by the Truth in Lending Act. Some of the required disclosures include:

If you are concerned about having to pay back a loan, visit FinAid.org. Here you will find a Loan Repayment Calculator which estimates your monthly loan payment and the salary needed to pay that amount.

Checkpoint Solution

The loan occurs on March 17 and is due 120 days from that date.

So the note is due on July 15.

The total amount due is

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I use the following poem to remember the number of days in a month.
Thirty days hath September,
April, June, and November;
All the rest have thirty-one,
Save February, with twenty-eight
And one day more you add to it each year in four.